Williams wants county to share income tax revenue from St. Joe's Center

ELYRIA -- Lorain County Commissioner Tom Williams wants discussion with the city of Lorain for revenue sharing of the city's income tax that is generated from St. Joseph's Community Center.

Williams requested County Administrator Jim Cordes work with Lorain to put together a revenue sharing agreement. He said they should create a fair and balance agreement, so the county would get half of the income tax. This will allow the county to pay back taxpayers that have invested in St. Joe's, he said.

He added that if the facility stays in operation and income tax is generated, it would be a good way to give back the money.

Doug Rangel, executive director of the Lorain Development Corp., said the city will have to take a look to see if that's something it would consider, but he is thinking more about the cold weather approaching and getting the boilers running. He said he doesn't have an issue with an agreement like that, but the county has to recognize the city has put more money into St. Joe's and there will be more unknown obligations.

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County Administrator Jim Cordes said he want to get the boilers running, because of tenants there, such as a day care center.

Commissioners approved repurposing $60,000 of the $120,000 in escrow, they have already approved giving, and putting it toward operational costs.

Williams said if the city agrees to sharing half of the income tax, he won't push to get the county to claim half the $360,000 Mercy hospital gave the center for demolition and other costs.

If the city does not agree to the revenue sharing, then they should liquidate the money with $180,000 going to the city and the other $180,000 going to the county, Williams said.

Rangel said the $120,000 in escrow may last anywhere from 90 days to 180 days and they are not discussing the remaining $240,000 because he wants to see if the facility will progress. That will go toward demolition and redevelopment of the facility, he said.

Mercy hospital had offered the $360,000 as a matching fund for a grant to demolish part of the building. The city asked Mercy if it can use the money for operational costs, which the hospital agreed. The city will receive another $120,000 in January 2013 and another $120,000 in January 2014.

Cordes met with Mercy and said the hospital doesn't care where the money goes, but only if it's in the best interest of the county and city.

Lorain will continue to get the income tax from St. Joe's to pay off the investment they have made. It also will receive taxes on the demolition and construction, Williams said.

"And that's why it's so important to have that partnership since the county taxpayers are putting that money into St. Joe's," Williams said.